Weekly Market Reports


28 May 2021

admin Macwool - Friday, May 28, 2021

 WEEKLY MARKET REPORT

Week Ending 28th May, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S48/20

This Week

M48/20

Last Sale

S47/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2330

2380n 2288
+42 1653 +677

18

1965

1963

1931

+34

1498

+463

19

1640

1633

1622

+18

1363

+227

20

1350

1336

1364

-14

1296

+54
21 1269n 1234 1299n -30 1275n -6
 26 - 729n 744 (M) -15 (M) 801 (M) -72 (M)

28

448n

455

458n

-10

600n

-152

MC

913n

898n

890n

+23

843n

+70

FINE WOOLS UP, BROAD WOOLS DOWN!

The market edged higher again this series (+5 cents) but the split in prices that comes into effect around the 19.5 micron mark is becoming more evident. The natural shift to coarser microns due to the good seasonal conditions is having a negative impact on fleece wools broader than 19/20 micron. Add the extra VM into the mix and these types are coming under more and more price pressure as the volume of broader/burrier fleece types comes onto the market increases. It’s the opposite story for < 19 micron wools as they continue to increase in value as their volume shrinks.

The AWEX EMI put on 5 cents to 1320 but gave back 2 cents to 1022 in US$ terms as the FRX dropped by 0.5% to 77.45 cents. The pass-in rate edged higher by 1% to 11% as some growers were caught by the sudden and, in some cases, very large falls for broader types. 18.5/19 micron rose by 20 cents with 18s and finer gaining 35 to 55 cents. Skirtings followed a similar pattern to last sale with < 18 micron and < 2.5% VM 20 to 40 cents dearer with all others solid. Cardings followed their combing counterparts with all types in this sector 15 to 30 cents to the good to see the MCI in Sydney rise by 23 cents to 913. Crossbreds continue to follow their cheapening pattern to fall by around 10 cents - their 4th consecutive week of falls with shearing costs now more than the return for some crossbred clips.

The buying strategies for merino fleece wools are worlds apart. Aggressive for sub-19 micron types but very cautious for broader wools. Many of these coarser types contain well above the 1% VM average that most orders require in China and the lack of FNF types is making it almost impossible to put them into orders that need to average below the 1% level. These higher VM lots > 20 micron took a beating this sale. Losses ranged between 100 to 150 cents clean (60 to 100 greasy) but the FNF to 2%VM types looked to be in line to where the MPGs finished.

As we have said in past reports, enquiry from outside of China is slowly on the improve as our critical Northern Hemisphere markets slowly emerge from their Covid-19 induced recessions and consumer spending gains momentum as lockdowns and restriction are lifted. More consumers are returning to “life as we knew it” which means working normally, catching up with people, going out and shopping. The short term outlook for prices to strengthen is coming from manufacturers in Europe and India with an increased level of enquiry that is being fielded by buyers at the moment. Italy, India (even with the pandemic almost uncontrollable) and the Chez Republic seem to be leading the charge for a price stable period or even a lift leading to the end of the season. Quantities will fall slightly to just 41,000 bales next week which should keep all buyers interested. We open the sale on Tuesday with 1,370 bales.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Sept. 21

1250

Main Buyers (This Week)

1

Techwool

5740

2

Fox & Lillie

3397

3

Endeavour Wool

3352

4

Tianyu Wool

3060

5

United Wool

2566

6

Lempriere

2467

Eastern Market Indicators (AUD cents/kg clean)

1320 cents é  5 cents compared with 21/04/2021

Northern Market Indicators (AUD cents/kg clean)

1402 cents é 9 cents compared with 21/04/2021

   AUD/USD Currency Exchange

0.7742 ê 0.0041 compared with 21/04/2021

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